Circle Unveils Bitcoin-Backed USDC Lending for Institutions

Circle, the issuer of USDC, has launched a new service for institutional customers that allows them to borrow USDC against their Bitcoin holdings without selling their BTC.

The Digital Asset-Backed Borrowing service enables eligible Circle Mint customers to deposit BTC and mint Circle Wrapped Bitcoin (cirBTC), which can then be supplied to supported third-party lending markets to borrow USDC into their Circle Mint accounts.

The product is available on both Arc and Ethereum networks, with Morpho being the first supported lending protocol. Circle plans to expand access to more lending markets and networks, with Aave support coming soon.

The borrowing positions are overcollateralized, meaning that access is based on the value of the collateral and market rules rather than unsecured credit checks. Rates, liquidation levels, liquidity, and collateral requirements are determined by the lending market chosen and may vary from time to time.